This blog post from March 2025 discusses Quantitative Balancing (QB), a proposed accounting reform by Marco Saba aimed at increasing transparency in bank balance sheets by classifying deposits as liabilities to the state treasury and acknowledging bank seigniorage. The article compares QB to other monetary reform proposals, such as sovereign money, fiscal currency, central bank digital currencies, regulatory reforms, and narrow banking, analyzing their objectives, mechanisms, and potential impacts. While some proposals share goals with QB, like reducing private banks' power or increasing state control over money, QB distinguishes itself by focusing on accounting transparency rather than radical systemic changes. The author argues that QB is a more practical and politically feasible approach to financial stability, potentially reducing public debt and mitigating crises by segregating funds and making monetary flows clearer. The post concludes that implementing QB requires legislative changes and international cooperation on accounting standards. https://centralerischibanche.blogspot.com/2025/03/come-il-blanciamento-quantitativo.html
Timeline of Main Events
- Around 1930s: The Chicago Plan is developed, proposing 100% reserves for demand deposits in banks.
- 2008: Global Financial Crisis occurs, highlighting systemic risks in the banking system and spurring discussions about financial reform.
- 2014: Werner, R. A. publishes work questioning the conventional understanding of how banks create money.
- 2018: The Vollgeld Initiative in Switzerland proposes to reserve the creation of money solely for the central bank but is ultimately rejected in a referendum.
- 2021: Bossone, B. publishes work on bank seigniorage in a monetary production economy.
- March 1, 2022: Omar Monzeglio, a court-appointed technical consultant, highlights a significant scandal in banking accounting related to "invisible entries."
- March 19, 2025: The article "Centrale Rischi Banche: Il Bilanciamento Quantitativo confrontato con le altre proposte di riforma monetaria" is published, discussing Marco Saba's Quantitative Balancing (QB) proposal and comparing it to other monetary reform ideas. This article references:
- The QB proposal itself.
- The Chicago Plan (1930s).
- The Vollgeld Initiative (Switzerland, 2018).
- Modern Monetary Theory (MMT).
- Central Bank Digital Currencies (CBDC) projects (e.g., China's e-CNY, EU's Digital Euro).
- Regulatory reforms like Basel III and Dodd-Frank.
- Narrow Banking proposals (inspired by the Glass-Steagall Act).
- February 21, 2025: A conversation with Grok 3 (xAI) discusses the potential of Quantitative Balancing in the United States.
- March 2025 (specific date unspecified): Marco Saba publishes "Quantitative Balancing: Financial Statements become reflective of bank's actual performance."
- 2025 (various dates in March): Blog posts discuss the potential localization and adaptation of Quantitative Balancing in various regions/countries, including Italy (specifically the Marche region), Uganda, and Australia. A draft legislative decree for amending Article 1834 of the Italian Civil Code to facilitate QB is also circulated. An appeal to the President of the Republic for social pacification and victim compensation related to the adoption of an amendment to Article 1834 is also published.
